We will do the right thing at next week’s Opec meet­ing, Saudi en­ergy min­is­ter says

The National - News - - BUSINESS -

It’s “in­evitable” that Opec and its al­lies will agree to boost oil out­put grad­u­ally at their meet­ing in Vi­enna next week, Saudi Ara­bia’s En­ergy Min­is­ter said yes­ter­day.

“As usual we will do the right thing,” Khalid Al Falih told re­porters in Moscow.

“I think we’ll come to an agree­ment that sat­is­fies most im­por­tantly the mar­ket.”

Rus­sia and Saudi Ara­bia, lead­ers of the deal be­tween Opec and other ma­jor oil pro­duc­ers to curb out­put and boost prices, dis­cussed their next move in Moscow on Thurs­day, the same day as the two na­tions faced off in the open­ing game of the foot­ball World Cup.

Rus­sian Pres­i­dent Vladimir Putin and Saudi Crown Prince Mo­hammed bin Sal­man, along with Mr Al Falih and his Rus­sian coun­ter­part, were set to dis­cuss how to boost oil pro­duc­tion while main­tain­ing their petro-al­liance and over­com­ing op­po­si­tion to an in­crease from other mem­bers of Opec.

Both na­tions have pro­posed plans for the so-called Opec­plus group that would add as much as 1 mil­lion bar­rels per day, about 1 per cent of global out­put, although Riyadh prefers a smaller in­crease, ac­cord­ing to sources.

“I think it will be a rea­son­able and moder­ate agree­ment,” Mr Al Falih said.

“It’s not go­ing to be any­thing out­landish.”

Brent fu­tures for Au­gust set­tle­ment traded at $76.49 a bar­rel on the Lon­don-based ICE Fu­tures Europe ex­change on Thurs­day, down 25 cents.

The con­tract ad­vanced 86 cents on Wed­nes­day.

The global bench­mark crude traded at a $9.88 pre­mium to WTI for the same month.

Saudi Ara­bia is mulling var­i­ous dif­fer­ent sce­nar­ios to raise sup­plies. One pro­posal en­vis­ages a sin­gle hike of just 500,000 bpd.

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